Standard & Poor's Rating Services downgraded Monrovia's credit rating and could lower it even further if the city's fiscal problems persist, Reuters reported Wednesday.
The city's issuer rating was dropped by S&P from an A to a BBB-plus and its pension obligation and lease revenue bonds were reduced from A-minus to BBB-plus as well, according to Reuters.
"The lowered ratings reflect our view of the substantial drop in the city's available general fund reserves and liquidity and the likelihood that the city's reserve and liquidity levels will remain low in the near-term," said Standard & Poor's credit analyst Li Yang in a written statement on the agency's website.
S&P said the against the city contributed to the agency's "negative outlook" about the Monrovia's ratings.
"The negative outlook reflects our view of the potential fiscal strain related to a lawsuit between the city and a local developer that was filed on Aug. 24, 2012; due to the city's financial situation, if it fails to manage its liquidity needs in the next year, we could lower the rating further," Yang wrote.